THE FOREIGN TRADE (DEVELOPMENT AND REGULATION) ACT, 1992 
_________ 

ARRANGEMENT OF SECTIONS 
_________ 

SECTIONS 

1.  Short title and commencement. 
2.  Definitions. 

CHAPTER I 

PRELIMINARY 

CHAPTER II 

POWER OF CENTRAL GOVERNMENT TO MAKE ORDER AND ANNOUNCE FOREIGN TRADE POLICY 

3.  Powers to make provisions relating to imports and exports. 
4.  Continuance of existing orders. 
5.  Foreign Trade Policy. 
6.  Appointment of Director General and his functions. 

CHAPTER III 

IMPORTER-EXPORTER CODE NUMBER AND LICENCE 

7.  Importer-exporter Code Number. 
8.  Suspension and cancellation of Importer-exporter Code Number. 
9.  Issue, suspension and cancellation of licence. 

CHAPTER IIIA 

QUANTITATIVE RESTRICTIONS 

9A. Power of Central Government to impose quantitative restrictions. 

CHAPTER IV 

SEARCH, SEIZURE, PENALTY AND CONFISCATION 

10.  Power relating to search and seizure. 
11.  Contravention of provisions of this Act, rules, orders and foreign trade policy. 
11A. Crediting sums realised by way of penalties in Consolidated Fund of India. 
11B. Empowering Settlement Commission for regularisation of export obligation default. 
12.  Penalty or confiscation not to interfere with other punishment. 
13.  Adjudicating Authority. 
14.  Giving of opportunity to the owner of the goods (including the goods connected with services or 

technology), etc. 

CONTROLS ON EXPORT OF SPECIFIED GOODS, SERVICES AND TECHNOLOGY 

CHAPTER IVA 

14A. Controls on export of specified goods, services and technology. 
14B. Transfer controls. 
14C. Catch-all controls. 
14D. Suspension or cancellation of a licence. 
14E. Offences and penalties. 

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CHAPTER V 

APPEAL AND REVIEW 

SECTIONS 

15.  Appeal. 
16.  Review. 
17.  Powers of Adjudicating and other Authorities. 

CHAPTER VI 

MISCELLANEOUS 

18.  Protection of action taken in good faith. 
18A.Application of other laws not barred. 
19.  Power to make rules. 
20.  Repeal and savings. 

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THE FOREIGN TRADE (DEVELOPMENT AND REGULATION) ACT, 1992 

ACT NO. 22 OF 1992 

[7th August, 1992.]  

An  Act  to  provide  for  the  development  and  regulation  of  foreign  trade  by  facilitating  imports 
into, and augmenting exports from,  India and for matters connected therewith  or incidental 
thereto. 

BE it enacted by Parliament in the Forty-third Year of the Republic of India as follows:— 

CHAPTER I 

PRELIMINARY 

1.  Short  title and  commencement.—(1) This  Act may  be  called  the  Foreign  Trade  (Development 

and Regulation) Act, 1992. 

(2) Sections 11 to 14 shall come into force at once and the remaining provisions of this Act shall be 

deemed to have come into force on the 19th day of June, 1992. 

2. Definitions.—In this Act, unless the context otherwise requires,— 

(a) “Adjudicating Authority” means the authority specified in, or under, section 13; 

(b)  “Appellate  Authority”  means  the  authority  specified  in,  or  under,  sub-section  (1)  of  

section 15; 

(c)  “conveyance”  means  any  vehicle,  vessel,  aircraft  or  any  other  means  of  transport  including 

any animal; 

(d) “Director General” means the Director General of Foreign Trade appointed under section 6; 

1[(e) “import” and “export” means,— 

(I) in relation to goods, bringing into, or taking out of, India any goods by land, sea or air; 

(II) in relation to services or technology,— 

(i) supplying, services or technology— 

(A) from the territory of another country into the territory of India; 

(B) in the territory of another country to an Indian service consumer; 

(C) by a service supplier of another country, through commercial presence in India; 

(D)  by  a  service  supplier  of  another  country,  through  presence  of  their  natural 

persons in India; 

(ii) supplying, services or technology— 

(A) from India into the territory of any other country; 

(B) in India to the service consumer of any other country; 

(C) by a service supplier of India, through commercial presence in the territory of any 

other country; 

1. Subs. by Act 25 of 2010, s. 2, for clause (e) (w.e.f.27-8-2010). 

3 

 
 
 
 
 
                                                           
(D) by a service supplier of India, through presence of Indian natural persons in the 

territory of any other country: 

Provided that “import” and “export” in relation to the goods, services and technology regarding 
Special  Economic  Zone  or  between  two  Special  Economic  Zones  shall  be  governed  in  accordance 
with the provisions contained in the Special Economic Zones Act, 2005 (28 of 2005).] 

(f) “Importer-exporter Code Number” means the Code Number granted under section 7; 

(g)  “licence”  means  a licence  to import  or  export and  includes  a  customs  clearance  permit  and 

any other permission issued or granted under this Act; 

(h) “Order” means any Order made by the Central Government under section 3; and 

(i) “prescribed” means prescribed by rules made under this Act. 
1[(j) “services” means service of  any description which is made available to potential users and 
includes all the tradable services specified under the General Agreement on Trade in Services entered 
into amongst India and other countries who are party to the said Agreement: 

Provided that, this definition shall not apply to the domain of taxation; 

(k) “service supplier” means any person who supplies a service and who intends to take benefit 

under the foreign trade policy; 

(l)  “specified  goods  or  services  or  technology”  means  the  goods  or  services  or  technology,  the 
export,  import,  transfer,  re-transfer,  transit  and  transshipment  of  which  is  prohibited  or  restricted 
because of imposition of conditions on the grounds of their being pertinent or relevant to India as a 
Nuclear Weapon State, or to the national security of India, or to the furtherance of its foreign policy 
or  its  international  obligations  under  any  bilateral,  multilateral  or  international  treaty,  covenant, 
convention  or  arrangement  relating  to  weapons  of  mass  destruction  or  their  means  of  delivery  to 
which  India  is  a  party  or  its  agreement  with  a  foreign  country  under  the  foreign  trade  policy 
formulated and notified under section 5 of the Act; 

(m)  “technology”  means  any  information  (including  information  embodied  in  software),  other 

than information in the public domain, that is capable of being used in— 

(i) the development, production or use of any goods or software; 

(ii)  the  development  of,  or  the  carrying  out  of,  an  industrial  or  commercial  activity  or  the 

provision of service of any kind. 

Explanation.—For the purpose of this clause— 

(a) when technology is described wholly or partly by reference to the uses to which it (or the 
goods  to  which  it  relates)  may  be  put,  it  shall  include  services  which  are  provided  or  used,  or 
which  are  capable  of  being  used  in  the  development,  production  or  use  of  such  technology  or 
goods;  

(b) “public domain” shall have the same meaning as assigned to it in clause (i) of section 4 of 
the Weapons of Mass Destruction and their Delivery System (Prohibition of Unlawful Activities) 
Act, 2005 (21 of 2005).] 

CHAPTER II 

POWER OF CENTRAL GOVERNMENT TO MAKE ORDER AND ANNOUNCE 2[FOREIGN TRADE POLICY]  

3.  Powers  to  make  provisions  relating  to  imports  and  exports.—(1)  The  Central  Government 
may, by Order published in the Official Gazette, make provision for the development and regulation of 
foreign trade by facilitating imports and increasing exports. 

1. Ins. by Act 25 of 2010, s. 2 (w.e.f.27-8-2010). 
2. Subs. by s.3, ibid., for “EXPORT AND IMPORT POLICY” (w.e.f.27-8-2010). 

4 

 
 
 
                                                           
(2) The Central Government may also, by Order published in the Official Gazette, make provision for 
prohibiting, restricting or otherwise regulating, in all cases or in specified classes of cases and subject to 
such exceptions, if any, as may be made by or under the Order, the 1[import or export of goods or services 
or technology]: 

2[Provided that the provisions of this  sub-section shall be applicable, in case of import or export of 
services  or  technology,  only  when  the  service  or  technology  provider  is  availing  benefits  under  the 
foreign trade policy or is dealing with specified services or specified technologies.] 

(3)  All  goods  to  which  any  Order  under  sub-section  (2)  applies  shall  be  deemed  to  be  goods  the 
import or export of which has been prohibited under section 11 of the Customs Act, 1962 (52 of 1962) 
and all the provisions of that Act shall have effect accordingly. 

2[(4) Without prejudice to anything contained in any other law, rule, regulation, notification or order, 
no  permit  or  licence  shall  be  necessary  for  import  or  export  of  any  goods,  nor  any  goods  shall  be 
prohibited  for  import  or  export  except,  as  may  be  required  under  this  Act,  or  rules  or  orders  made 
thereunder.] 

4. Continuance of existing orders.—All Orders made under the Imports and Exports (Control) Act, 
1947 (18 of 1947), and in force immediately before the commencement of this Act shall, so far as they are 
not inconsistent with the provisions of this Act, continue to be in force and shall be deemed to have been 
made under this Act. 

3[5.  Foreign  Trade  Policy.—The  Central  Government  may,  from  time  to  time,  formulate  and 
announce, by notification in the Official Gazette, the foreign trade policy and may also, inlike manner, 
amend that policy: 

Provided that the Central Government may direct that, in respect of the Special Economic Zones, the 
foreign trade policy shall apply to the goods, services and technology with such exceptions, modifications 
and adaptations, as may be specified by it by notification in the Official Gazette.] 

6. Appointment of Director General and his functions.—(1) The Central Government may appoint 

any person to be the Director General of Foreign Trade for the purposes of this Act. 

(2) The Director General shall advise the Central Government in the formulation of the 4[foreign trade 

policy] and shall be responsible for carrying out that policy. 

(3) The Central Government may, by Order published in the Official Gazette, direct that any power 
exercisable  by  it  under this  Act (other  than  the  powers  under sections  3,  5,  15,16  and  19)  may  also be 
exercised,  in  such  cases  and  subject  to  such  conditions,  by  the  Director  General  or  such  other  officer 
subordinate to the Director General, as may be specified in the Order. 

CHAPTER III 

IMPORTER-EXPORTER CODE NUMBER AND LICENCE 

7. Importer-exporter Code Number.—No person shall make any import or export except under an 
Importer-exporter Code Number granted by the Director General or the officer authorised by the Director 
General in this behalf, in accordance with the procedure specified in this behalf by the Director General: 

5[Provided  that  in  case  of  import  or  export  of  services  or  technology,  the  Importer-exporter  Code 
Number  shall  be  necessary  only  when  the  service  or  technology  provider  is  taking  benefits  under  the 
foreign trade policy or is dealing with specified services or specified technologies.] 

1. Subs. by Act 25 of 2010, s. 4, for “import or export of goods” (w.e.f.27-8-2010). 
2. Ins. by s. 4, ibid.(w.e.f.27-8-2010). 
3. Subs. by s. 5,ibid., for section 5 (w.e.f.27-8-2010). 
4. Subs. by s. 6, ibid., for “export and import policy” (w.e.f.27-8-2010). 
5. Ins. by s. 7, ibid. (w.e.f.27-8-2010). 

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8. Suspension and cancellation of Importer-exporter Code Number.—1[(1) Where— 

(a)  any  person  has  contravened  any  of  the  provisions  of  this  Act  or  any  rules  or  orders  made 
thereunder or the foreign trade policy or any other law for the time being in force relating to Central 
excise or customs or foreign exchange or has committed any other economic offence under any other 
law for the time being in force as may be specified by the Central Government by notification in the 
Official Gazette; or 

(b)  the  Director  General  or  any  other  officer  authorised  by  him  has  reason  to  believe  that  any 
person has made an export or import in a manner prejudicial to the trade relations of India with any 
foreign  country  or  to  the  interests  of  other  persons  engaged  in  imports  or  exports  or  has  brought 
disrepute to the credit or the goods of, or services or technology provided from, the country; or 

(c) any person who imports or exports specified goods or services or technology, in contravention 

of any provision of this Act or any rules or orders made thereunder or the foreign trade policy, 

the  Director  General  or  any  other  officer  authorised  by  him  may  call  for  the  record  or  any  other 
information from that person and may, after giving to that person a notice in writing informing him of the 
grounds on which it is proposed to suspend or cancel the Importer-exporter Code Number and after giving 
him a reasonable opportunity of making a representation in writing within such reasonable time as may be 
specified  in  the  notice  and,  if  that  person  so  desires,  of  being  heard,  suspend  for  a  period,  as  may  be 
specified in the order, or cancel the Importer-exporter Code Number granted to that person.] 

(2) Where any Importer-exporter Code Number granted to a person has been suspended or cancelled 
under  sub-section  (1),  that  person  shall  not  be  entitled  to  2[import  or  export  any  goods  or  services  or 
technology] except under a special licence, granted, in such manner and subject to such conditions as may 
be prescribed, by the Director General to that person. 

9.  Issue,  suspension  and  cancellation  of  licence.—(1)  The  Central  Government  may  levy  fees, 
subject  to  such  exceptions,  in  respect  of  such  person  or  class  of  persons  making  an  application  for 
3[licence, certificate, scrip or any instrument bestowing financial or fiscal benefits] of in respect of any 
3[licence, certificate, scrip or any instrument bestowing financial or fiscal benefits] granted or renewed in 
such manner as may be prescribed. 

4[(2) The Director General or an officer authorised by him may, on an application and after making 
such inquiry as he may think fit, grant or renew or refuse to grant or renew a licence to import or export 
such  class  or  classes  of  goods  or  services  or  technology  as  may  be  prescribed  and,  grant  or  renew  or 
refuse to grant or renew a certificate, scrip or any instrument bestowing financial or fiscal benefit, after 
recording in writing his reasons for such refusal.] 

(3) A  3[licence, certificate, scrip or any instrument bestowing financial or fiscal benefits] granted or 

renewed under this section shall— 

(a) be in such form as may be prescribed; 

(b) be valid for such period as may be specified therein; and 

(c) be subject to such terms, conditions and restrictions as may be prescribed or as specified in the 
3[licence, certificate, scrip or any instrument bestowing financial or fiscal benefits] with reference to 
the terms, conditions and restrictions so prescribed. 

(4)  The  Director  General  or  the  officer  authorised  under  sub-section  (2)  may,  subject  to  such 
conditions as may be prescribed, for good and sufficient reasons, to be recorded in writing, suspend or 
cancel  any  3[licence,  certificate,  scrip  or  any  instrument  bestowing  financial  or  fiscal  benefits]  granted 
under this Act: 

1. Subs. by Act 25 of 2010, s. 8, for sub-section (1) (w.e.f.27-8-2010). 
2. Subs. by s. 8, ibid., for “import or export any goods” (w.e.f.27-8-2010). 
3. Subs. by s. 9, ibid., for “licence” (w.e.f.27-8-2010). 
4. Subs. by s. 9, ibid., for sub-section (2) (w.e.f.27-8-2010). 

6 

 
                                                           
Provided that no such suspension or cancellation shall be made except after giving the holder of the 
1[licence,  certificate,  scrip  or  any  instrument  bestowing  financial  or  fiscal  benefits]  a  reasonable 
opportunity of being heard. 

(5)  An  appeal  against  an  order  refusing  to  grant,  or renew  or  suspending  or  cancelling,  a  1[licence, 
certificate,  scrip  or any  instrument  bestowing  financial  or fiscal  benefits]  shall  lie  in like  manner  as an 
appeal against an order would lie under section 15. 

2[CHAPTER IIIA 

QUANTITATIVE RESTRICTIONS 

9A.  Power  of  Central  Government  to  impose  quantitative  restrictions.—(1)  If  the  Central 
Government, after conducting such enquiry as it deems fit, is satisfied that any goods are imported into 
India in such increased quantities and under such conditions as to cause or threaten to cause serious injury 
to domestic industry, it may, by notification in the Official Gazette, impose such quantitative restrictions 
on the import of such goods as it may deem fit: 

Provided  that  no  such  quantitative  restrictions  shall  be  imposed  on  any  goods  originating  from  a 
developing country so long as the share of imports of such goods from that country does not exceed three 
per  cent.  or  where  such  goods  originate  from  more  than  one  developing  country,  then,  so  long  as  the 
aggregate of the imports from all such countries taken together does not exceed nine per cent. of the total 
imports of such goods into India. 

(2) The quantitative restrictions imposed under this section shall, unless revoked earlier, cease to have 

effect on the expiry of four years from the date of such imposition: 

Provided  that  if  the  Central  Government  is  of  the  opinion  that  the  domestic  industry  has  taken 
measures  to  adjust  to  such  injury  or  threat  thereof  and  it  is  necessary  that  the  quantitative  restrictions 
should continue to be imposed to prevent  such injury or threat and to facilitate  the adjustments, it may 
extend the said period beyond four years: 

Provided further that  in  no  case  the  quantitative  restrictions shall continue  to  be  imposed  beyond a 

period of ten years from the date on which such restrictions were first imposed. 

(3)  The  Central  Government  may,  by  rules  provide  for  the  manner  in  which  goods,  the  import  of 
which shall be subject to quantitative restrictions under this section, may be identified and the manner in 
which the causes of serious injury or causes of threat of serious injury in relation to such goods may be 
determined. 

(4) For the purposes of this section— 

(a)  “developing  country”  means  a  country  notified  by  the  Central  Government  in  the  Official 

Gazette, in this regard; 

(b)  “domestic  industry”  means  the  producers  of  goods  (including  producers  of  agricultural 

goods)— 

(i) as a whole of the like goods or directly competitive goods in India; or 

(ii)  whose  collective  output  of  the  like  goods  or  directly  competitive  goods  in  India 

constitutes a major share of the total production of the said goods in India; 

(c) “serious injury”  means  an  injury  causing  significant  overall  impairment  in the  position of a 

domestic industry; 

(d) “threat of serious injury” means a clear and imminent danger of serious injury.] 

1. Subs. by Act 25 of 2010, s. 9, for “licence” (w.e.f.27-8-2010). 
2. Ins. by s. 10, ibid. (w.e.f.27-8-2010). 

7 

 
 
 
                                                           
CHAPTER IV 

SEARCH, SEIZURE, PENALTY AND CONFISCATION 

10. Power relating to search and seizure.—1[(1) The Central Government may, by notification in 

the Official Gazette, authorise any person for the purposes of exercising such powers with respect to,— 

(a) entering such premises where the goods are kept, stored or processed, manufactured, traded or 
supplied  or  received  for  the  purposes  of  import  or  export  and  searching,  inspecting  and  seizing  of 
such goods, documents, things and conveyances connected with such import and export of goods; 

(b) entering such premises from which the services or technology are being provided, supplied, 
received,  consumed  or  utilised  and  searching,  inspecting  and  seizing  of  such  goods,  documents, 
things and conveyances connected with such import and export of services and technology, 

subject to such requirements and conditions and with the approval of such officer, as may be prescribed:  

Provided that the provisions of clause (b) shall be applicable, in case of import or export of services 
or technology, only when the service or technology provider is availing benefit under the foreign trade 
policy or is dealing with specified services or specified technologies.] 

(2)  The  provisions  of  the  Code  of  Criminal  Procedure,  1973  (2  of  1974)  relating  to  searches  and 

seizures shall, so far as may be, apply to every search and seizure made under this section.  

2[11.  Contravention  of  provisions  of  this  Act,  rules,  orders  and  foreign  trade  policy.—(1)  No 
export or import shall be made by any person except in accordance with the provisions of this Act,  the 
rules and orders made thereunder and the foreign trade policy for the time being in force. 

(2) Where any person makes or abets or attempts to make any export or import in  contravention of 
any provision of this Act or any rules or orders made thereunder or the foreign trade policy, he shall be 
liable to a penalty of not less than ten thousand rupees and not more than five times the value of the goods 
or  services  or  technology  in  respect  of  which  any  contravention  is  made  or  attempted  to  be  made, 
whichever is more. 

(3) Where any person signs or uses, or causes to be made, signed or used, any declaration, statement 
or document submitted to the Director General or any officer authorised by him under this Act, knowing 
or having reason to believe that such declaration, statement or document is forged or tampered with or 
false in any material particular, he shall be liable to a penalty of not less than ten thousand rupees or more 
than  five  times  the  value  of  the  goods  or  services  or  technology  in  respect  of  which  such  declaration, 
statement or document had been submitted, whichever is more. 

(4) Where any person, on a notice to him by the Adjudicating Authority, admits any contravention, 
the  Adjudicating  Authority  may,  in  such  class  or  classes  or  cases  and  in  such  manner  as  may  be 
prescribed, determine, by way of settlement, an amount to be paid by that person. 

(5) A penalty imposed under this Act may, if it is not paid by any person, be recovered by any one or 

more of the following modes, namely:— 

(a)  the  Director  General  may  deduct  or  require  any  officer  subordinate  to  him  to  deduct  the 
amount payable under this Act from any money owing to such person which may be under the control 
of such officer; or 

(b) the Director General may require any officer of customs to deduct the amount payable under 
this  Act  from  any  money  owing  to  such  person  which  may  be  under  the  control  of  such  officer  of 
customs, as if the said amount is payable under the Customs Act, 1962 (52 of 1962); or 

(c)  the  Director  General  may  require  the  Assistant  Commissioner  of  Customs  or  Deputy 
Commissioner  of  Customs  or  any  other  officer  of  Customs  to  recover  the  amount  so  payable  by 
detaining or selling any goods (including the goods connected with services or technology) belonging 
to  such  person  which  are  under  the  control  of  the  Assistant  Commissioner  of  Customs  or  Deputy 

1. Subs. by Act 25 of 2010, s. 11, for sub-section (1) (w.e.f.27-8-2010). 
2. Subs. by s. 12, ibid., for section 11(w.e.f.27-8-2010). 

8 

 
                                                           
Commissioner or Customs or any other officer of Customs, as if the said amount is payable under the 
Customs Act, 1962 (52 of 1962); or 

(d) if the amount cannot be recovered from such person in the manner provided in clauses (a), (b) 

and (c),— 

(i) the Director General or any officer authorised by him may prepare a certificate signed by 
him  specifying  the  amount  due from  such  person  and  send  it to the  Collector  of  the  District in 
which such person owns any property or resides or carries on business and the said Collector on 
receipt  of  such  certificate  shall  proceed  to  recover  from  such  person  the  amount  specified 
thereunder as if it were an arrear of land revenue; or 

(ii) the  Director  General  or  any  officer  authorised by  him  (including  an  officer of  Customs 
who shall then exercise his powers under the Customs Act, 1962 (52 of 1962) ) and in accordance 
with  the  rules  made  in  this  behalf,  detain  any  movable  or  immovable  property  belonging  to  or 
under the control of such person, and detain the same until the amount payable is paid, as if the 
said  amount is  payable under the  Customs  Act,  1962;  and  in  case,  any  part  of the  said amount 
payable or of the cost of the distress or keeping of the property, remains unpaid for a period of 
thirty  days  next  after  any  such  distress,  may  cause  the  said  property  to  be  sold  and  with  the 
proceeds of such sale, may satisfy the amount payable and costs including cost of sale remaining 
unpaid and shall render the surplus, if any to such person. 

(6)  Where  the  terms  of  any  bond  or  other  instrument  executed  under  this  Act  or  any  rules  made 
thereunder provide that any amount due under such instrument may be recovered in the manner laid down 
in  sub-section  (5),  the  amount  may,  without  prejudice  to  any  other  mode  of  recovery,  be  recovered  in 
accordance with the provisions of that sub-section. 

(7) Without prejudice to the provisions contained in this section, the Importer-Exporter Code Number 
of  any  person  who  fails  to  pay  any  penalty  imposed  under  this  Act,  may  be  suspended  by  the 
Adjudicating Authority till the penalty is paid or recovered, as the case may be. 

(8) Where any contravention of any provision of this Act or any rules or orders made thereunder or 
the foreign trade policy has been,  is being, or is attempted to be,  made, the goods (including the goods 
connected  with  services  or  technology)  together  with  any  package,  covering  or  receptacle  and  any 
conveyances  shall,  subject  to  such  conditions  and  requirement  as  may  be  prescribed,  be  liable  to 
confiscation by the Adjudicating Authority. 

(9)  The  goods  (including  the  goods  connected  with  services  or  technology)  or  the  conveyance 
confiscated  under  sub-section  (8)  may  be  released  by  the  Adjudicating  Authority,  in  such  manner  and 
subject to such conditions as may be prescribed, on payment by the person concerned of the redemption 
charges equivalent to the market value of the goods or conveyance, as the case may be.] 

1[11A.  Crediting  sums  realised  by  way  of  penalties  in  Consolidated  Fund  of  India.—All  sums 

realised by way of penalties under this Act shall be credited to the Consolidated Fund of India. 

11B.  Empowering  Settlement  Commission  for  regularisation  of  export  obligation  default.—
Settlement of customs duty and interest thereon as ordered by the Settlement Commission as constituted 
under section 32 of the Central Excise Act, 1944 (1 of 1944), shall be deemed to be a settlement under 
this Act.] 

12.  Penalty  or  confiscation  not  to  interfere  with  other  punishments.—No  penalty  imposed  or 
confiscation  made  under  this  Act  shall  prevent  the  imposition  of  any  other  punishment  to  which  the 
person affected thereby is liable under any other law for the time being in force. 

13. Adjudicating Authority.—Any penalty may be  imposed or any confiscation  may be adjudged 
under this Act by the Director General or, subject to such limits as may be specified, by such other officer 
as the Central Government may, by notification in the Official Gazette, authorise in this behalf. 

1. Ins. by Act 25 of 2010, s. 13 (w.e.f.27-8-2010). 

9 

 
                                                           
14.  Giving  of  opportunity  to  the  owner  of  the  1[goods  (including  the  goods  connected  with 
services or technology)], etc.—No order imposing a penalty or of adjudication of confiscation shall  be 
made  unless  the  owner  of  the  1[goods  (including  the  goods  connected  with  services  or  technology)]  or 
conveyance, or other person concerned, has been given a notice in writing— 

(a)  informing  him  of  the  grounds  on  which  it  is  proposed  to  impose  a  penalty  or  to  confiscate 

such 1[goods (including the goods connected with services or technology)] or conveyance; and 

(b)  to  make  a  representation  in  writing  within  such reasonable  time  as  may  be  specified  in  the 
notice  against the imposition  of  penalty  or  confiscation  mentioned therein,  and,  if  he  so  desires,  of 
being heard in the matter.   

2[CHAPTER IVA 

CONTROLS ON EXPORT OF SPECIFIED GOODS, SERVICES AND TECHNOLOGY 

14A. Controls on export of specified goods, services and technology.—(1) In regard to controls on 
export  of  specified  goods,  services  and  technology  referred  to  in  this  Chapter,  the  Weapons  of  Mass 
Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005 (21 of 2005) shall 
apply to exports, transfers, re-transfers, brought in transit, trans-shipment of, and brokering in specified 
goods, technology or services. 

(2)  All  terms,  expressions  or  provisions  of  the  Weapons  of  Mass  Destruction  and  their  Delivery 
Systems (Prohibition of Unlawful Activities) Act, 2005 (21 of 2005) shall apply to the specified goods, 
services  or  technology  with  such  exceptions,  modifications  and  adaptations  as may  be  specified  by  the 
Central Government by notification in the Official Gazette. 

(3)  The  Central  Government  may,  by  notification  in  the  Official  Gazette,  direct  that  any  of  the 

provisions of this Chapter— 

(a) shall not apply to any goods, services or technologies, or 

(b)  shall  apply  to  any  goods,  services  or  technologies  with  such  exceptions,  modifications  and 

adaptations as may be specified in the notification. 

14B. Transfer controls.—(1) The Central Government may, by notification in the Official Gazette, 
make  rules  in  conformity  with  the  provisions  of  the  Weapons  of  Mass  Destruction  and  their  Delivery 
Systems  (Prohibition  of  Unlawful  Activities)  Act,  2005  (21  of  2005)  for,  or,  in  connection  with,  the 
imposition of controls in relation to transfer of specified goods, services or technology. 

(2)  No  goods,  services  or  technology  notified  under  this  Chapter  shall  be  exported,  transferred,  
re-transferred, brought in transit or transshipped except in accordance with the provisions of this Act, the 
Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005 
(21 of 2005) or any other relevant Act. 

14C.  Catch-all  controls.—No  person  shall  export  any  material,  equipment  or  technology  knowing 
that  such  material,  equipment  or  technology  is  intended  to  be  used  in  the  design  or  manufacture  of  a 
biological  weapon,  chemical  weapon,  nuclear  weapon  or  other  nuclear  explosive  device,  or  in  their 
missile delivery systems. 

14D.  Suspension  or  cancellation  of  a  licence.—The  Director  General  or  an  officer  authorised  by 
him  may,  by  order,  suspend  or  cancel  a  licence  to  import  or  export  of  specified  goods  or  services  or 
technology  without  giving  the  holder  of  the  licence  a  reasonable  opportunity  of  being  heard  but  such 
person  shall  be  given  a  reasonable  opportunity  of  being  heard  within  six  months  of  such  order  and 
thereupon  the  Director  General  or  the  officer  so  authorised  may,  if  necessary,  by  order  in  writing, 
confirm, modify or revoke such order. 

1. Subs. by Act 25 of 2010, s. 14, for “goods” (w.e.f. 27-8-2010). 
2. Ins. by s. 15, ibid. (w.e.f.27-8-2010). 

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14E. Offences and penalties.—(1) In case of a contravention relating to specified goods, services or 
technologies, the penalty shall be in accordance with the provisions of the Weapons of Mass Destruction 
and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005 (21 of 2005). 

(2) Where any person contravenes or attempts to contravene or abets, any of the provision(s) of this 
Chapter in relation to import or export of any specified goods or services or technology, he shall, without 
prejudice  to  any  penalty  which  may  be  imposed  on  him,  be  punishable  with  imprisonment  for  a  term 
stipulated  in  the  Weapons  of  Mass  Destruction  and  their  Delivery  Systems  (Prohibition  of  Unlawful 
Activities) Act, 2005 (21 of 2005). 

(3) No court shall take cognizance of any offence punishable under this Chapter without the previous 
sanction of the Central Government or any officer authorised in this behalf by the Central Government by 
general or special order.] 

CHAPTER V 

APPEAL AND 1[REVIEW] 

15. Appeal.—(1) Any person aggrieved by any decision or order made by the Adjudicating Authority 

under this Act may prefer an appeal,— 

(a)  where  the  decision  or  order  has  been  made  by  the  Director  General,  to  the  Central 

Government; 

(b) where the decision or order has been made by an officer subordinate to the Director General, 
to  the  Director  General  or  to  any  officer  superior  to  the  Adjudicating  Authority  authorised  by  the 
Director General to hear the appeal, 

within a period of forty-five days from the date on which the decision or order is served on such person: 

Provided  that  the  Appellate  Authority  may,  if  it  is  satisfied  that  the  appellant  was  prevented  by 
sufficient cause from preferring the appeal within the aforesaid period, allow such appeal to be preferred 
within a further period of thirty days: 

Provided  further  that  in  the  case  of  an  appeal  against  a  decision  or  order  imposing  a  penalty  or 
redemption  charges,  no  such  appeal  shall  be  entertained  unless  the  amount  of  penalty  or  redemption 
charges has been deposited by the appellant: 

Provided also that, where the Appellate Authority is of opinion that the deposit to be made will cause 
undue hardship to the appellant, it may, at its discretion, dispense with such deposit either unconditionally 
or subject to such conditions as it may impose. 

(2)  The  Appellate  Authority  may,  after  giving  to  the  appellant  a  reasonable  opportunity  of  being 
heard, if he so desires, and after making such further inquiries, if any, as it may consider necessary, make 
such orders as it thinks fit, confirming, modifying or reversing the decision or order appealed against, or 
may send back the case with such directions, as it may think fit, for a fresh adjudication or decision, as the 
case may be, after taking additional evidence, if necessary: 

Provided that an order enhancing or imposing a penalty or redemption charges or confiscating  2[the 
goods (including the goods connected with services or technology)] of a greater value shall not be made 
under this section unless the appellant has been given an opportunity of making a representation, and, if 
he so desires, of being heard in his defence. 

(3) The order made in appeal by the Appellate Authority shall be final. 

3[16. Review.—The Central Government, in the case of any decision or order made by the Director 
General, or the Director General in the case of any decision or order made by any officer subordinate to 
him, may on its or his own motion or otherwise, call for and examine the records of any proceeding, for 

1. Subs. by Act 25 of 2010, s. 16, for “REVISION” (w.e.f.27-8-2010). 
2. Subs. by s. 17, ibid., for “goods” (w.e.f.27-8-2010). 
3. Subs. by s. 18, ibid., for section 16 (w.e.f.27-8-2010). 

11 

 
                                                           
the purpose of satisfying itself or himself, as the case may be, as to the correctness, legality or propriety of 
such decision or order and make such orders thereon as may be deemed fit: 

Provided that no decision or order shall be varied under this section so as to prejudicially affect any 

person unless such person— 

(a) has, within a period of two years from the date of such decision or order, received a notice to 

showcause why such decision or order shall not be varied; and 

(b)  has  been  given  a  reasonable  opportunity  of  making  representation  and,  if  he  so  desires,  of 

being heard in his defence.] 

17. Powers of Adjudicating and other Authorities.—(1) Every authority making any adjudication 
or hearing any appeal or exercising any powers of 1[review] under this Act shall have all the powers of a 
civil  court  under  the  Code  of  Civil  Procedure,  1908  (5  of  1908),  while  trying  a  suit,  in  respect  of  the 
following matters, namely:— 

(a) summoning and enforcing the attendance of witnesses; 

(b) requiring the discovery and production of any document; 

(c) requisitioning any public record or copy thereof from any court or office; 

(d) receiving evidence on affidavits; and 

(e) issuing commissions for the examination of witnesses or documents. 

(2)  Every  authority  making  any  adjudication  or  hearing  any  appeal  or  exercising  any  powers  of 
1[review] under this Act shall be deemed to be a civil court for the purposes of sections 345 and 346 of 
the Code of Criminal Procedure, 1973 (2 of 1974). 

(3)  Every  authority  making  any  adjudication  or  hearing  any  appeal  or  exercising  any  powers  of 
1[review] under this Act shall have the power to make such orders of an interim nature as it may think fit 
and may also, for sufficient cause, order the stay of operation of any decision or order. 

(4)  Clerical  or  arithmetical  mistakes  in  any  decision  or  order  or  errors  arising  therein  from  any 
accidental slip or omission may at any time be corrected by the authority by which the decision or order 
was made, either on its own motion or on the application of any of the parties: 

Provided that where any correction proposed to be made under this sub-section will have the effect of 
prejudicially affecting any person, no such correction shall be made except after giving to that person a 
reasonable  opportunity  of  making  a  representation  in  the  matter  and  no  such  correction  shall  be  made 
after the expiry of two years from the date on which such decision or order was made. 

CHAPTER VI 

MISCELLANEOUS 

18. Protection of action taken in good faith.—No order made or deemed to have been made under 
this Act shall be called in question in any court, and no suit, prosecution or other legal proceeding shall lie 
against  any  person  for  anything  in  good  faith  done  or  intended  to  be  done  under  this  Act  or  any  order 
made or deemed to have been made thereunder. 

2[18A.  Application  of  other  laws  not  barred.—The provisions of this  Act shall  be  in  addition  to, 

and not in derogation of, the provisions of any other law for the time being in force.] 

19. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette, 

make rules for carrying out the provisions of this Act. 

1. Subs. by Act 25 of 2010, s. 19, for “Revision” (w.e.f.27-8-2010). 
2. Ins. by s. 20, ibid. (w.e.f.27-8-2010). 

12 

 
 
 
                                                           
(2)  In  particular,  and  without  prejudice  to  the  generality  of  the  foregoing  power,  such  rules  may 

provide for all or any of the following matters, namely:— 

(a) the manner in which and the conditions subject to which a special licence may be issued under 

sub-section (2) of section 8; 

(b) the exceptions subject to which and the person or class of persons in respect of whom fees 
may  belevied  and  the  manner  in  which  a  1[licence,  certificate,  scrip  or  any  instrument  bestowing 
financial or fiscal benefits] may be granted or renewed under sub-section (1) of section 9; 

2[(c) the class or classes of goods (including the goods connected with service or technology) for 
which  a  licence,  certificate,  scrip  or  any  instrument  bestowing  financial  or  fiscal  benefits  may  be 
granted under sub-section (2) of section 9;] 

(d)  the  form  in  which  and  the  terms,  conditions  and  restrictions  subject  to  which  1[licence, 
certificate,  scrip  or  any  instrument  bestowing  financial  or  fiscal  benefits]  may  be  granted  under  
sub-section (3) of section 9; 

(e)  the  conditions  subject  to  which  a  1[licence,  certificate,  scrip  or  any  instrument  bestowing 

financial or fiscal benefits] may be suspended or cancelled under sub-section (4) of section 9; 

3[(ea) the matter in which goods the import of which shall be subject to quantitative restrictions, 
may be identified and the manner in which the causes of serious injury or causes of threat of serious 
injury in relation to such goods may be determined under sub-section (3) of section 9A;] 

(f)  the  premises,  4[goods  (including  the  goods  connected  with  the  service  or  technology)], 
documents, things and conveyances in respect of which and the requirements and conditions subject 
to  which  power  of  entry,  search,  inspection  and  seizure  may  be  exercised  under  sub-section  (1)  of 
section10; 

(g)  the  class  or  classes  of  cases  for  which  and  the  manner  in  which  an  amount,  by  way  of 

settlement, may be determined under 5[sub-section (4) of section 11]; 

6[(h) the requirements and conditions subject to which goods (including the goods connected with 
the  service  or  technology)  and  conveyances  shall  be  liable  to  confiscation  under  sub-section  (8)  of 
section 11;] 

7[(i)  the  manner  in  which  and  the  conditions  subject  to  which  goods  (including  the  goods 
connected  with  the  service  or  technology)  and  conveyances  may  be  released  on  payment  of 
redemption charges under sub-section (9) of section 11;] 

(j) any other matter which is to be, or may be, prescribed, or in respect of which provision is to 

be, or may be, made by rules. 

(3) Every rule and every Order made by the Central Government under this Act shall be laid, as soon 
as may be after it is made, before each  House of Parliament, while it is in session, for a total period of 
thirty days which may be comprised in one session or in two or more successive sessions, and if, before 
the  expiry  of  the  session  immediately  following  the  session  or  the  successive  sessions  aforesaid,  both 
Houses agree in making any modification in the rule or the Order or both Houses agree that the rule or the 
Order should not be made, the rule or the Order, as the case may be, shall thereafter  have effect only in 
such  modified  form  or  be of  no  effect,  as  the  case  may  be; so,  however, that  any  such  modification  or 
annulment  shall  be  without  prejudice to  the  validity  of  anything  previously  done  under that  rule  or  the 
Order. 

1. Subs. by Act 25 of 2010, s. 21, for “licence” (w.e.f.27-8-2010). 
2. Subs. by s. 21, ibid., for clause (c) (w.e.f.27-8-2010). 
3. Ins. by s.21, ibid. (w.e.f.27-8-2010). 
4. Subs. by s. 21, ibid., for “goods” (w.e.f.27-8-2010). 
5. Subs. by s. 21, ibid., for “sub-section (3) of section 11” (w.e.f.27-8-2010). 
6. Subs. by s. 21, ibid., for clause (h) (w.e.f.27-8-2010). 
7. Subs. by s. 21, ibid., for clause (i) (w.e.f.27-8-2010). 

13 

 
                                                           
20.  Repeal  and  savings.—(1)  The  Imports  and  Exports  (Control)  Act,  1947  (18  of  1947)  and  the 

Foreign Trade (Development and Regulation) Ordinance, 1992 (Ord. 11 of 1992) are hereby repealed. 

(2)  The  repeal  of  the  Imports  and  Exports  (Control)  Act,  1947  (18  of  1947)  shall,  however,  not 

affect,— 

(a) the previous operation of the Act so repealed or anything duly done or suffered thereunder; or 

(b)  any  right,  privilege,  obligation  or  liability  acquired,  accrued  or  incurred  under  the  Act  so 

repealed; or 

(c)  any  penalty,  confiscation  or  punishment  incurred  in  respect  of  any  contravention  under  the 

Act so repealed; or 

(d) any proceeding or remedy in respect of any such right, privilege, obligation, liability, penalty, 

confiscation or punishment as aforesaid, 

and  any  such  proceeding  or  remedy  may  be  instituted,  continued  or  enforced,  and  any  such  penalty, 
confiscation or punishment may be imposed or made as if that Act had not been repealed. 

(3) Notwithstanding the repeal of the Foreign Trade (Development and Regulation) Ordinance, 1992 
(Ord. 11 of 1992), anything done or any action taken under the said Ordinance shall be deemed to have 
been done or taken under the corresponding provisions of this Act. 

14 

 
 
